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BB unveils expansionary MPS

DSEX adds 95 points in five straight sessions

FE REPORT | July 30, 2020 00:00:00

Stocks extended the winning streak for the fifth straight session Wednesday as the bargain hunters continued their appetite on sector-wise issues amid post-Eid expectation.

DSEX, the key index of the Dhaka Stock Exchange, went up by 14.66 points or 0.35 per cent to settle at 4,171 during the four hours trading.

Market analysts said the central bank's expansionary monetary policy statement, gradual reopening of the economy coupled with no major spike in daily Covid-19 infected cases, led investors to take position in sector-wise stocks.

The Bangladesh Bank unveiled an expansionary monetary policy statement (MPS) on Wednesday for current fiscal year lowering borrowing costs to boost money flow for revamping the pandemic-hit economy.

According to International Leasing Securities, the optimistic investors kept buying of shares owing to gradual improvement of economic activities amid Covid-19 pandemic.

The stockbroker noted that the investor exerted optimism riding on the news that the central bank's monetary policy statement for the FY 2020-21 has emphasised on revamping the economic activities, particularly private sector credit growth and the country's ailing capital market.

The bargain hunters took position on general insurance sector stocks while the other investors rebalance their portfolio based on the latest quarterly earnings disclosures, said the stockbroker.

Turnover, another important indicator of the market, stood at Tk 3.99 billion on the country's prime bourse, which was 10 per cent lower than the previous day's turnover of Tk 4.45 billion.

The DSE Shariah Index also advanced 0.75 point to close at 964. However, the DS30 index, comprising blue chips, lost 0.79 points to finish at 1,402.

Most of the shares remained stuck at the trading. Of the issues traded, 169 remained unchanged while 126 issues advanced and 58 declined on the DSE floor.

A total number of 95,161 trades were executed in the day's trading session with a trading volume of 111.59 million shares and mutual fund units.

The market-cap on the premier bourse also rose to Tk 3,233 billion on Wednesday, from Tk 3,227 billion in the previous session.

Eastern Insurance topped the turnover chart with shares worth Tk 150 million changing hands, closely followed by Pioneer Insurance, Paramount Insurance, Beximco Pharma and Sonar Bangla Insurance.

Pioneer Insurance was the day's best performer, posting a gain of 9.89 per cent while Sonali Paper & Board Mills was the worst loser, losing 8.12 per cent.

The Chittagong Stock Exchange also edged higher with its All Shares Price Index (CASPI)-gaining 40 points to close at 11,874 and the Selective Categories Index - CSCX -advancing 25 points to finish at 7,200.

Of the issues traded, 93 gained, 27 declined and 100 remained unchanged on the CSE.

The port city bourse traded 3.84 million shares and mutual fund units with turnover value of Tk 143 million.

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